Here is what you need to know on Thursday, October 15:
Markets are edging lower and the safe-haven dollar is somewhat bid as US fiscal stimulus talks are stuck as the clock ticks down toward the elections. Brexit and rising coronavirus cases are high on the EU Summit agenda, ahead of US jobless claims and other figures.
US fiscal stimulus talks are going nowhere fast. Less than three weeks ahead of the elections, Treasury Secretary Steven Mnuchin seems frustrated by the lack of progress. He was one of the proponents of negotiating a large relief package, contrary to Senate Republicans, which are focused on the Supreme Court. Democrats are in pole position in opinion polls ahead of the November 3 vote and seem reluctant to give President Donald Trump a political victory.
Elections: Both the incumbent and challenger Joe Biden will hold separate televised town-halls late in the day. Models show a near 90% of a Biden win, while the Senate is a toss-up. Markets currently prefer a clean Democratic sweep that would facilitate vast fiscal spending.
US jobless claims are set to resume their falls and head toward 800,000. The Philly Fed Manufacturing Index is set to remain in positive territory.
See US Initial Jobless Claims Preview: Extraordinary normality
Brexit: GBP/USD advanced above 1.30 after the UK refrained from abandoning talks. However, EU leaders are set to hear that no progress was made in recent talks about future relations between Brussels and London.
Eurozone coronavirus cases are on the rise, prompting additional restrictions across the old continent. Most notably, France imposed a nighttime curfew in Paris and other cities. German officials warned that new measures are coming following a surge in infections.
Christine Lagarde, President of the European Central Bank, will speak later in the day. The increase in COVID-19 cases could trigger dovish comments and readiness to do more.
AUD/USD has dropped significantly after Phillip Lowe, Governor of the Reserve Bank of Australia, said he could cut rates to 0.1% and leave rates at lower levels for longer. The RBA's dovish stance outweighed a better-than-expected jobs report from Australia, where the Unemployment Rate remained below 7%.
Gold has been struggling around $1,900 following the lack of progress in stimulus talks while WTI oil is stable at around $41.
Cryptocurrencies have been consolidating their recent gains, with Bitcoin holding around $11,300.
See 2020 Elections: How stocks, gold, dollar could move in four scenarios, nightmare one included
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0700 after US data
EUR/USD stays in a consolidation phase below 1.0700 in the early American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold trades on the back foot, manages to hold above $2,300
Gold struggles to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to reverse its direction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.